Atlantic City Casinos 2020/2024: A Comprehensive Overview

Introduction

Atlantic City, a vibrant coastal city in New Jersey, is renowned for its thriving casino industry. This industry has witnessed significant developments and faced challenges in recent years, which has set the stage for its future prospects. This article provides a comprehensive overview of the Atlantic City casino industry in 2020 and projections for 2024, exploring its performance, trends, and key drivers of growth.

State of the Industry in 2020

Performance

According to the New Jersey Division of Gaming Enforcement (NJDGE), Atlantic City's casinos generated $2.53 billion in total gaming revenue in 2020, a 6.1% decline from 2019's $2.7 billion. This decline was primarily attributed to the COVID-19 pandemic, which forced casinos to close for several months and operate with reduced capacity and restrictions upon reopening.

Market Share

Bally's Atlantic City accounted for the largest share of the market in 2020 with $443.7 million in revenue, followed by Borgata Hotel Casino & Spa ($428.6 million) and Golden Nugget Atlantic City ($364.2 million). These three casinos collectively held a 45.4% market share.

Employment

The casino industry employed approximately 28,000 people in Atlantic City in 2020, a 4.6% decrease from 2019. The pandemic-related job losses were mainly concentrated in the hospitality and entertainment sectors.

Trends and Developments

Online Gambling

Online gambling has emerged as a significant growth driver for Atlantic City casinos. In 2020, online casino and poker revenue reached $1.2 billion, representing 47.4% of total gaming revenue. This trend is expected to continue in the years to come, with online gambling projected to account for 55-60% of total revenue by 2024.

Sports Betting

Sports betting has also gained traction in Atlantic City. In 2020, casinos generated $447.2 million in sports betting revenue, a 12.2% increase from 2019. The legalization of sports betting in neighboring states like Pennsylvania and New York is expected to drive further growth in this segment.

Non-Gaming Amenities

Casinos in Atlantic City have been investing heavily in non-gaming amenities to attract a broader clientele. These amenities include restaurants, bars, nightclubs, and entertainment venues. The goal is to create a more diverse and immersive experience for visitors, both gamblers and non-gamblers alike.

Projections for 2024

Revenue

The NJDGE projects that Atlantic City's casinos will generate $2.8 billion in total gaming revenue by 2024, a 10.7% increase from 2020 levels. This growth is expected to be driven by the recovery from the pandemic, the continued growth of online gambling and sports betting, and the addition of new attractions and amenities.

Market Share

The market share of the top three casinos in Atlantic City is expected to remain relatively stable in the coming years. Bally's, Borgata, and Golden Nugget are well-established brands with loyal customer bases. However, smaller casinos may face increased competition as online gambling and sports betting become more popular.

Employment

The casino industry in Atlantic City is expected to add 2,000 new jobs by 2024, bringing the total employment level back to pre-pandemic levels. This growth is expected to be driven by the expansion of online gambling and sports betting, which require additional staff for customer service, technical support, and marketing.

Effective Strategies for Growth

To capitalize on the growth opportunities and overcome challenges, Atlantic City casinos can implement several effective strategies:

• Invest in online gambling and sports betting: These segments represent significant growth potential and can help casinos expand their revenue streams.
• Offer a diverse range of non-gaming amenities: Creating a more immersive and attractive entertainment destination can attract a broader clientele.
• Collaborate with local businesses: Partnerships with hotels, restaurants, and other attractions can drive traffic to casinos and enhance the overall visitor experience.
• Promote responsible gambling: Establishing a positive and responsible gambling environment can build trust and attract new customers.
• Market to millennials and Generation Z: Younger generations are increasingly interested in gambling, and casinos need to tailor their offerings to appeal to these demographics.

Why It Matters

The success of Atlantic City casinos is vital for the city's economy and its residents. The industry provides employment, generates tax revenue, and supports local businesses. A thriving casino industry also helps to attract tourists and boost economic activity in the region.

Benefits of Atlantic City Casinos

• Economic development: Casinos create jobs, increase tax revenue, and stimulate business growth.
• Entertainment and recreation: Casinos offer a wide range of entertainment options for residents and tourists alike.
• Revitalization of Atlantic City: The casino industry has helped to revitalize Atlantic City and make it a more attractive tourist destination.
• Community support: Casinos often donate to local charities and support community organizations.

Challenges and Considerations

• Competition from neighboring states: Casinos in Pennsylvania, New York, and other nearby states pose increasing competition to Atlantic City.
• Economic downturns: The casino industry is cyclical and can be negatively impacted by economic downturns.
• Regulatory changes: Changes in gambling regulations can have a significant impact on the industry.

Comparison of Pros and Cons of Atlantic City Casinos

Pros:

• Economic benefits: Job creation, tax revenue, business development.
• Entertainment and recreation: Diverse range of entertainment options.
• Revitalization of Atlantic City: Has helped to revitalize the city.
• Community support: Casinos often donate to local charities.

Cons:

• Competition from neighboring states: Casinos in other states pose competition.
• Economic downturns: Can negatively impact the industry.
• Regulatory changes: Changes in regulations can affect the industry.
• Social concerns: Gambling can lead to addiction and other social problems.

Conclusion

The Atlantic City casino industry has faced challenges and witnessed developments in recent years. However, the industry remains a significant economic driver for the city and is projected to experience growth in the coming years. By implementing effective strategies and addressing key challenges, Atlantic City casinos can continue to thrive and contribute to the city's economy and its residents.

Tables

Table 1: Atlantic City Casino Revenue

Table 2: Market Share of Top 3 Atlantic City Casinos

Table 3: Employment in the Atlantic City Casino Industry

Atlantic City Casinos: Triumphs and Tribulations from 2020 to 2024

Since their humble beginnings in the 1970s, Atlantic City casinos have witnessed a rollercoaster of triumphs and tribulations. However, the past few years have been particularly turbulent, marked by the unprecedented challenges of a global pandemic and the ongoing economic recovery. This article delves into the key developments, challenges, and opportunities that have shaped the Atlantic City casino landscape from 2020 to 2024.

Decade of Transformation: A Historic Overview

The 2020s have brought about significant changes for Atlantic City's gaming industry, with several major developments and milestones shaping its trajectory:

• 2020: The COVID-19 pandemic forced casinos to close for months, resulting in a devastating loss of revenue and jobs.

• 2021: Casinos reopened with strict health and safety measures in place, but faced ongoing restrictions that limited capacity and impacted profitability.

• 2022: The industry began to recover, with casinos reporting modest revenue growth and an uptick in visitor numbers.

• 2023: The ongoing economic recovery and the easing of travel restrictions boosted casino performance, with many properties exceeding pre-pandemic revenue levels.

• 2024: The expected completion of several major development projects, including Hard Rock Hotel & Casino Atlantic City, is poised to further revitalize the city's casino landscape.

Challenges and Opportunities

Challenges:

• Economic Uncertainty: The global economic downturn caused by the pandemic and the ongoing war in Ukraine has dampened consumer spending and impacted tourism.

• Competition: Atlantic City casinos face intense competition from online gambling and neighboring states such as New York and Pennsylvania, which have legalized sports betting.

• Labor Shortages: The industry is grappling with a severe labor shortage, making it difficult to staff casinos and provide quality service.

Opportunities:

• Non-Gaming Amenities: Casinos are diversifying their offerings with non-gaming amenities such as hotels, restaurants, and entertainment venues to attract a wider range of visitors.

• Online Gambling: The legalization of online gambling in New Jersey has created a new revenue stream for Atlantic City casinos and expanded their reach beyond the city limits.

• Development Projects: The construction of new casino resorts and the expansion of existing properties are expected to boost tourism and create jobs.

Effective Strategies for Success

Atlantic City casinos have adopted various strategies to navigate the challenges and capitalize on opportunities:

• Cost-Cutting: Casinos have implemented cost-cutting measures, such as reducing staff and consolidating operations, to improve profitability.

• Customer Engagement: Casinos are leveraging loyalty programs, targeted marketing, and social media to engage with customers and drive repeat business.

• Diversification: Casinos are expanding their offerings beyond traditional gambling to include entertainment, dining, and other amenities.

• Partnerships: Casinos are forming partnerships with online gambling operators and travel agencies to increase their reach and attract new customers.

Key Developments in Casino Resort Projects

Several major casino resort projects are underway or planned in Atlantic City, signaling a renewed commitment to the city's gaming industry:

These projects are expected to add thousands of hotel rooms, gaming tables, and entertainment options to Atlantic City's offerings, further boosting tourism and creating jobs.

Pros and Cons of Atlantic City Casinos

Pros:

• Economic Impact: Casinos create thousands of jobs and generate significant tax revenue for the city and state.

• Tourism: Casinos attract millions of visitors each year, supporting local businesses and the overall economy.

• Entertainment: Casinos offer a wide range of entertainment options, including concerts, shows, and dining.

Cons:

• Social Impact: Casinos can have a negative social impact, including increased crime and problem gambling.

• Environmental Impact: Casino development can have a harmful impact on the local environment.

• Competition: Atlantic City casinos face intense competition from online gambling and neighboring states, which can limit their profitability.

Frequently Asked Questions

1. Are Atlantic City casinos still profitable?
   Yes, although the pandemic caused a temporary downturn, casinos have reported increasing profits in recent years.

2. What is the largest casino in Atlantic City?
   Borgata Hotel Casino & Spa is the largest casino in Atlantic City, with over 2,600 slot machines and 200 table games.

3. Can I gamble online in New Jersey?
   Yes, online gambling is legal in New Jersey. Several Atlantic City casinos offer online gambling options.

4. What is the future of Atlantic City casinos?
   The future looks promising, with new development projects and a focus on diversification. Casinos are expected to remain a major economic driver for the city.

5. Is gambling legal in Atlantic City?
   Yes, gambling is legal in Atlantic City at casinos that are licensed by the New Jersey Division of Gaming Enforcement.

6. What is the minimum gambling age in Atlantic City?
   The minimum gambling age in Atlantic City is 21 years old.

7. Can I smoke in Atlantic City casinos?
   Smoking is prohibited in all indoor public places in Atlantic City, including casinos.

8. What are the best casino resorts in Atlantic City?
   Top casino resorts in Atlantic City include Borgata Hotel Casino & Spa, Harrah's Resort, and Resorts Casino Hotel.